and SCM Agreement.
Article 3.8: Notification and Consultations
1.
Upon receipt by a Party?s competent authorities of a properly documented anti-dumping application with respect to imports from the other Party, and no later than 15 days before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application and afford the other Party a meeting or other similar opportunities regarding the application, consistent with the Party?s laws and regulations.
2.
Upon receipt by a Party?s competent authorities of a properly documented countervailing duty application with respect to imports from the other Party, and before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application and afford the other Party a meeting to consult with its competent authorities regarding the application.
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Article 3.9: Undertakings
1.
After a Party?s competent authorities initiate an anti-dumping or countervailing duty investigation, the Party shall transmit to the other Party?s embassy or competent authorities written information regarding the Party?s procedures for requesting its authorities to consider an undertaking on price including the timeframes for offering and concluding any such undertaking,
if practicable.
2.
In an anti-dumping investigation, where a Party?s
competent authorities have made a preliminary affirmative determination of dumping and injury caused by such dumping, the Party shall afford due consideration and adequate opportunity for consultations to exporters of the other Party regarding proposed price undertakings which, if accepted, may result in suspension of the investigation without imposition of anti-dumping duties, through the means provided for in the Party?s laws, regulations,
and procedures.
3.
In a countervailing duty investigation, where a Party?s competent authorities have made a preliminary affirmative determination of subsidization and injury caused by such subsidization, the Party shall afford due consideration and adequate opportunity for consultations to the other Party and exporters of the other Party regarding proposed undertakings on price which, if accepted, may result in suspension of the investigation without imposition of countervailing duties, through the means provided for in the Party?s laws, regulations,
and procedures.
Article 3.10: Investigation after Termination Resulting from a Review
The Parties agree to examine, with special care, any application for initiation of an anti-dumping investigation on a good originating in the other Party and on which anti-dumping measures have been terminated in the previous 12 months as a result of a review. Unless this pre-initiation examination indicates that the circumstances have changed, the investigation shall not proceed.
Section C: Committee on Trade Remedies
Article 3.11: Committee on Trade Remedies
1.
The Parties hereby establish a Committee on Trade Remedies (hereinafter referred to as the ?Committee?), comprising representatives at an appropriate level from relevant agencies of each Party who have responsibility for trade remedies matters, including anti-dumping, subsidies and
The Parties hereby establish a Committee on Trade Remedies (hereinafter referred to as the ?Committee?), comprising representatives at an appropriate level from relevant agencies of each Party who have responsibility for trade remedies matters, including anti-dumping, subsidies and
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countervailing measures, and safeguards issues.
2.
The functions of the Committee shall include:
(a)
enhancing a Party?s knowledge and understanding of the other Party?s trade remedies laws, regulations, policies and practices;
(b)
overseeing the implementation of this Chapter;
(c)
improving cooperation between the competent authorities of the Parties having responsibility for matters on trade remedies;
(d)
providing a forum for the Parties to exchange information on issues relating to anti-dumping, subsidies and countervailing measures,
and safeguards;
(e)
providing a forum for the Parties to discuss other relevant topics of mutual interest,
including:
(i)
international issues relating to trade remedies, including issues relating to the WTO Doha Round Rules negotiations; and
(ii)
practices by the competent authorities of the Parties in anti-dumping and countervailing duty investigations such as the application of ?facts available? and verification procedures; and
(f)
cooperating on any other matter that the Parties may agree on, as necessary.
3.
The Committee shall meet at least once a year and may meet more frequently as the Parties may agree.
Chapter FOUR. RULES OF ORIGIN
Article 4.1: Definitions
For purposes of this Chapter:
Cost, Insurance, and Freight (CIF)
means the value of the good imported and includes the cost of freight and insurance up to the port or place of entry into the country of importation, in accordance with Article VII of GATT 1994 and the Customs Valuation Agreement;
Free on Board (FOB)
means the free on board value of a good, inclusive of the cost of transport, from the producer to the port or site of final shipment abroad, in accordance with Article VII of GATT 1994 and the Customs Valuation Agreement;
fungible materials
means materials that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another for origin purposes by virtue of any markings or mere visual examination;
materials
means ingredients, raw materials, components, parts, or accessories used in the production of goods;
packing materials and containers for transportation
means the goods used to protect goods during their transportation, different from those materials or containers used for their retail sale;
preferential tariff treatment means tariff concessions granted to originating goods as reflected by the tariff rates applicable under this Agreement;
Product Specific Rules (PSR)
means the rules that specify that the materials have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy a regional value content or a combination of any of these criteria; and
production
means methods of obtaining goods including growing, mining, harvesting, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing, or assembling goods.
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Article 4.2: Origin Criteria
For purposes of this Agreement, goods shall be considered as originating in a Party if they have been:
(a)
wholly obtained or produced entirely in the
territory of a Party, in accordance with Article 4.3;
(b)
produced entirely in the territory of a Party using non-originating materials provided the goods satisfy the requirements set out in Annex 4-B; or
(c)
produced entirely in the territory of a Party exclusively from materials originating in the Parties
and meet all other applicable requirements of this Chapter.
Article 4.3:
Wholly Obtained or Produced Goods
For purposes of Article 4.2(a), the following goods shall be considered as wholly obtained or produced entirely in the
territory of a Party:
(a)
plants and plant products grown and harvested, picked, or gathered in that Party;
(b)
live animals born and raised in that Party;
(c)
goods obtained from live animals referred to in subparagraph (b);
(d)
goods obtained by hunting, trapping, fishing, aquaculture, gathering, or capturing conducted in that Party;
(e)
minerals and other naturally occurring substances not included in subparagraphs (a) through (d), extracted or taken from its soil, waters, seabed, or beneath the seabed;
(f)
goods of sea-fishing and other marine products extracted or taken by vessels registered with the Party and entitled to fly the flag of that Party, and other products extracted or taken by the Party or a person of that Party from the waters, seabed, or beneath the seabed outside the territorial waters of the Party, provided that the Party or a person of that Party has the rights to exploit1
such
1
The Parties understand that for purposes of determining the origin of goods
of sea-fishing and other goods, the ?rights to exploit? include those rights of access to the fisheries resources of a
of sea-fishing and other goods, the ?rights to exploit? include those rights of access to the fisheries resources of a
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waters, seabed, and beneath the seabed in accordance with international law2;
(g)
goods of sea-fishing and other marine products extracted or taken from the high seas by vessels registered with the Party and entitled to fly the flag of that Party;
(h)
goods produced or made on board factory ships registered with a Party and entitled to fly the flag of that Party, exclusively from goods referred to in subparagraph (f) or (g);
(i)
articles collected from that Party which can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for the recovery of parts of raw materials or recycling purposes;
(j)
waste and scrap derived from:
(i)
manufacturing or processing operations conducted
in that
Party; or
(ii)
used goods collected in that Party, provided that such goods are fit only for the recovery of raw materials; and
(k)
goods obtained or produced in the territory of the Party solely from goods referred to in subparagraphs (a) through (j).
Article 4.4: Not Wholly Obtained or Produced Goods
1.
For purposes of Article 4.2(b), goods shall be considered originating if the regional value content (hereinafter referred to as the ?RVC?) is not less than 40 percent of the FOB value or the goods have undergone a change in tariff classification at four digit-level (change in tariff
heading) of the HS as a general rule except those covered in Annex 4-B.
2.
For purposes of Article 4.2(b), the RVC shall be calculated in accordance with any of the following methods:
coastal State, as accruing from agreements or other arrangements concluded between a Party and the coastal State at the level of governments or duly authorized private entities.
2
International law refers to generally accepted international
law such as the United Nations Convention on the Law of the Sea.
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(a)
Build-Up Method
VOM
RVC = -----------------------
x 100%
FOB
VOM means value of originating materials, which includes the value of originating materials, direct labor
cost, direct overhead cost, transportation cost, and profit.
(b)
Build-Down Method
FOB -
VNM
RVC = -----------------------
x 100%
FOB
VNM means value of non-originating materials, which shall be:
(i)